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Minister: Freeport Divestment Process Completed in 2 Weeks

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1 July 2018 13:16 WIB

Minister of State-Owned Enterprises (BUMN) Rini Soemarno in Jakarta, July 25, 2016. Tempo/Tony Hartawan

TEMPO.CO, Jakarta - Minister for State-Owned Enterprises Rini Soemarno said the Freeport divestment process will be completed within the next two weeks. During that time period, there is still a process of finalization in taxation and the environment.

The issue of taxation and the environment, said Rini, is still in the process of finalization. She said the section will still be discussed with the Minister of Finance and the Minister of Environment and Forestry. "It might take another two weeks," Rini said at her private residence, Saturday, June 30.

In the calculation, said Rini, Freeport divestment price will reach US$3.5 billion to US$4 billion or equivalent to Rp56 trillion.

The value, said Rini, has been reported to President Joko Widodo or Jokowi, before Eid Day. Furthermore, the process to be completed is a matter of the details of the agreement between the two parties.

Rini said this cooperation is a crucial thing. She wants its management in a transparent and professional manner. "How to keep from interfering the government and actually being managed in an open manner," she said.

Earlier, Minister of Energy and Mineral Resources Ignatius Jonan held a closed-door meeting with the Freeport CEO Richard Adkerson at the Four Seasons Hotel, Washington, Monday afternoon or Tuesday morning, June 25.

According to Jonan, all issues in negotiations with Freeport have been agreed upon. The final point in the finalization phase is the 51 percent share divestment of Freeport Indonesia.

Associated with the divestment, Jonan said it would depend on the readiness of PT Inalum (Persero) as a state-owned company that will buy Freeport Indonesia's shares. According to him, Inalum needs to find a loan for the acquisition process.

"If it's ready, I hope next week there can be a joint statement between CEO Freeport McMoRan and the government that this (divestment) has agreed on 51 percent, jointly managed, agreed to build a smelter, agreed to become IUPK (special mining permit), and state revenue higher, "said Jonan.

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